Infrastructure: make sure the asset performs throughout its life
OECD Framework for the Governance of Infrastructure
9. MAKE SURE THE ASSET PERFORMS THROUGHOUT ITS LIFE
Ensure a focus on the performance of the asset throughout its lifespan by putting in place monitoring systems and institutions.
WHY IS IT IMPORTANT?
It can be difficult to oversee the performance of infrastructure service delivery thereby maintaining value for money through the performance of the asset.
The establishment of a regulator strengthens the public interest, makes service providers more accountable, and enables an independent price-setting process;
Some have responded by enhancing the skills of sectoral units and regulators and streamlining the role and availability of specialised advisers;
Others have set up dedicated units, especially in the field of PPPs, which are contract based, but increasingly with a broader remit of infrastructure in general.
Central agencies such as the Central Budget Authority, Supreme Audit Institution and regulatory authorities should play their part and retain the appropriate level of responsibility during the operational phase.
Special care should also be taken to ensure that value for money is maintained during renegotiation.
KEY POLICY QUESTIONS:
Is there a strategy for how performance of the asset throughout the life of the asset is to be ensured?
Are the line departments, sector regulators or Supreme Audit Institution responsible for monitoring asset performance?
Are there programs in place for training and empowering relevant institutions?
Do PPP/concession contracts state the required output and performance?
CENTRAL INFRASTRUCTURE BODIES FOCUS ON DEVELOPMENT BUT LESS ON MONITORING AND ASSESSMENT
Policy document for ensuring performance from assets regulated by agency (sector regulator) or by contract with line department or similar;